FAQs

Business Process Outsourcing or BPO is the process of transferring business functions to either self owned or third party service providers, typically in lower cost countries such as the Philippines. Two parties are involved in a direct outsourcing contract, and these are primarily the client and the provider. The client decides what the business processes are that a service provider will execute. In other outsourcing contracts, there may be brokers involved. These brokers serve as middlemen, finding the suitable service provider for the client. Brokers may also perform certain responsibilities regarding operation management.

Outsourcing in the Philippines has come a long way since its modest beginning in 2000. At present, the country is a front runner in the outsourcing services industry. Outsourcing services cover a wide variety of industries, including web development, computer programming, medical transcription, mortgage processing, customer service and legal services. Outsourcing in the Philippines is certainly a first-rate choice because of reduced operating costs, maximized productivity and exceptional work force. The Philippines has a rich pool of qualified workers. Filipino workers are noteworthy for their flexibility, work ethic, loyalty, and trainability. The Philippines also has excellent infrastructure and favorable environment for business and telecommunications. Outsourcing in the Philippines equals low cost but high quality services.

Your company can receive significant benefits through outsourcing. However, like any other services, there are a few drawbacks involved that you should be really aware of. These include problems in management operation as well as control, delivery and confidentiality. Because of geographical distances as well as time-zone variations, there may be problems in management operation and control. Moreover, there maybe lack in direct communication, which can prove to be challenging. Failure in delivery is another drawback even if there is already a signed service level agreement. Since you would also be divulging certain components of your business to your service provider, this may result to breeches in confidentiality as well as system access. Unless you secure your offshore operation, your company may be vulnerable to different business risks. That is why it is important to find the most suitable outsourcing service provider as well as establishing a secure offshore operation.

Outsourcing remains as one of the fastest growing industries in the Philippines. Corollary, the Philippine government endorses policy directives aimed to draw foreign investments. These policy directives include affirmative labor policies, tax incentives, as well as custom benefits. The Philippine government recognizes BPO as a priority investment area that is why it encourages operations all over the country. Economic zones have been created, providing job opportunities to skilled Filipinos. Aside from Metro Manila, BPO centers are also situated in Cebu, Davao, Pampanga and Baguio.
Where can we get more information about Philippine regulatory rules for BPOs?

The Philippine government recognizes BPO as a high-investment area, and has created business parks for IT; provided infrastructure investment, and approved the E-commerce law and the Data Privacy Law and Securities Guidelines. Also, the Commission on Information and Communication Technology (http://www.cict.gov.ph/) was created. The commission is the primary government agency in the Philippines that promotes, develops and regulates information and communication technology. The commission is also responsible for education as well as specialized training; support of regulatory and legal frameworks; and promotion of ICT industry growth. Off shoring as well as outsourcing companies have also grouped together, creating the Business Outsourcing Association of the Philippines (http://www.bpap.org). A BPO gateway, the association has specially made a roadmap that will help determine the industry's vital opportunities as well as challenges.